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LOGISTA: 1Q’21 RESULTS (ANÁLISIS BANCO SABADELL)

1Q'21 vs 1Q'20 Results
Sales: € 309.5 M (+2.9% vs. +1.9% expected);
Adjusted EBIT: € 67.7 M (+10.3% vs. -0.5% expected);
Net Profit: € 45.3 M (+21.8% vs. -8.3% expected);

The company has released better 1Q’21 results than expected with adjusted EBIT growing +10% (+0% BS(e)), even despite the fact that in 2021 there is a negative inventory effect (around € -5 M) and that last year the quarter did not reflect the impact from Covid-19.
Economic sales grew +2.9% thanks to the improved revenues in the tobacco distribution business, courier service, pharma and convenience store distribution, which more than offset the drops in publications, transport and packaging and convenience products in France (non-tobacco network). Also having a positive impact were the tariffs linked to the track&trace service, which in 1Q’20 had not been fully applied.
Net Profit even grew to a greater extent (+22%) thanks to the interests generated by a fiscal dispute that saw a favourable resolution.
In the light of the positive start to the year, the company raised its adjusted EBIT estimates, now forecasting high single digit growth (vs. mid single digit previously vs. +4.5% BS(e)) although it warns about the uncertainty surrounding the economic performance, and thus, it will revise its guidance on a quarterly basis.
We expect a positive market reaction to these results, the share price has slid -4% YTD. We reiterate our BUY recommendation. Target Price: € 24.23/sh. (upside 56.12%)